It's an election year in the US and no matter what they do between now and Dec, markets will be up by year end. If Obama wants to get re-elected in December he will flood markets with capital, get unemployment down below 8% (election promise), all of which will be good for commodities.
470,000 people got new jobs in the US in Jan/Feb, so there is fair chance the existing home sales number later today from the US will be good.
The risk of course is that oil continues to rise and ruins the party but Obama is putting pressure on the Saudis to release more oil.
As for China, inflation is negligible, so they have room to move policy wise. I think a slowdown in China is offset by a gear up in the US. China also hasn't really slowed down, they simply restocked heavily with metal in September & October, whilst prices were very low. They are trying to force prices lower by buying nothing at present. However, they will need to restock, so I think April to June will see a pickup in metal demand.
KZL Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
